Caltex Australia says EG Group's offer undervalues company, but open to talks

[BENGALURU] Caltex Australia said on Monday that the A$3.9 billion-plus (S$3.52 billion) proposal from Britain's EG Group undervalued the company but that it was open to more talks for a potential transaction.

EG Group made the offer last month, including A$3.9 billion in cash and separate shares in a new, listed infrastructure and refinery company made up of Caltex's remaining assets.

The offer came just days after Canada's Alimentation Couche-Tard's twice-improved A$8.80 billion bid.

Last Tuesday, Caltex Australia named chief financial officer Matthew Halliday an interim chief executive as it evaluates the two proposals.

The takeover tussle comes as Caltex works to boost margins from its refining business and its fuel and convenience store businesses, while planning a public listing of a property trust with around 250 of its petrol station sites.

EG Group was not immediately available for comment outside office hours.

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REUTERS